In the virtual currency ecosystem, “Candy” is a widely recognized concept that serves as a bridge between blockchain projects and potential users. Unlike mainstream tokens (such as Bitcoin, Ethereum) that require purchasing or mining, Candy refers to small amounts of free tokens distributed by projects—its core feature is “zero direct cost” for users, making it a common tool for projects to engage with the community and expand their user base. It is not tied to traditional financing methods like ICO (Initial Coin Offering) or STO (Security Token Offering); instead, it focuses on “user-centric” free distribution, allowing even newcomers to the virtual currency space to easily access project tokens.

1. Why do virtual currency projects distribute Candy?

The distribution of Candy is not a random move but a strategic choice for projects, mainly serving three core goals:

• Cold start of new projects: For newly launched blockchain projects (especially DeFi, NFT, or Web3 applications), the biggest challenge is low brand awareness and a small user base. Distributing Candy allows users to “try before they buy”—users get free tokens without investment, which motivates them to register accounts, download apps, or explore the project’s functions, helping the project quickly accumulate initial users.
• Community construction and activation: A vibrant community is key to the long-term development of a virtual currency project. Many projects distribute Candy through community activities (such as answering project-related questions in Discord, participating in Twitter topic discussions, or sharing project content) to encourage user interaction. This not only increases community activity but also helps the project spread its core concepts (such as decentralized finance, asset digitization) to more people.
• Lower user participation thresholds: For users who are hesitant to enter the virtual currency market due to concerns about investment risks, Candy provides a “low-risk entry point”. Users can hold and use Candy to experience the project’s services (such as participating in testnet transactions, voting on project proposals) without spending money, gradually understanding the project’s value and reducing their resistance to subsequent in-depth participation.

2. Common ways to distribute Candy in virtual currency projects

Candy distribution methods are flexible and diverse, and projects usually choose the appropriate form based on their own positioning and user groups. The most common methods include:

• Registration and KYC rewards: Users only need to complete basic registration on the project’s official website or app, and some projects require additional KYC (identity verification) to receive a fixed amount of Candy. For example, many centralized exchange (CEX) new user activities or DeFi platform beta versions use this method to attract users to complete real-name authentication and increase user stickiness.
• Task-based incentives: Projects release small tasks (such as following the project’s official Twitter/X account, joining its Discord or Telegram community, sharing project posters to social media, or inviting friends to register) and reward users with Candy after they complete the tasks. This method not only expands the project’s social media influence but also achieves “user fission” through invitations.
• Community event benefits: During important nodes (such as project anniversary, product update, or major partnerships), projects often hold online activities (such as live Q&A, quiz competitions, or NFT blind box airdrops) and distribute Candy as rewards to participants. For example, some NFT projects will give Candy to users who share their NFT collection experiences in the community, encouraging content creation.
• Holder airdrop linkage: Some projects will distribute Candy to users who already hold specific tokens (such as Ethereum, BNB, or the project’s old version tokens) as a “loyalty reward”. For example, a DeFi project may airdrop Candy to users who have provided liquidity on Uniswap, which not only retains old users but also attracts holders of other tokens to pay attention to the project.

3. How do users obtain and use Candy?

(1) Steps to obtain Candy

1. Follow official channels: The most reliable way to obtain Candy is through the project’s official channels, such as the official website, official Twitter/X, Discord, Telegram, or official apps. Avoid clicking on unknown links (such as spam emails, social media private messages) to prevent being scammed.
2. Complete specified operations: According to the project’s requirements, finish tasks such as registration, KYC, following social accounts, sharing content, or inviting friends. After completing the tasks, the project will usually verify the operation within 1-7 working days.
3. Receive tokens to the wallet: After verification, Candy will be sent to the user’s virtual currency wallet (such as MetaMask, Trust Wallet, or the built-in wallet of the exchange). Users need to ensure that the wallet address is correct—if the address is wrong, the tokens cannot be retrieved.

(2) Common usage scenarios of Candy

• Exchange for official tokens: Some projects set rules that users can exchange Candy for the project’s formal tokens (with actual market value) after accumulating a certain amount. For example, 100 Candy can be exchanged for 1 official token, which can then be traded on exchanges.
• Participate in project testing: Many projects use Candy as a “test currency” for testnets. Users can use Candy to simulate transactions, liquidity provision, or NFT minting on the testnet, helping the project find bugs and optimize functions.
• Enjoy community rights: Holding Candy may give users the right to participate in the project’s community voting (such as voting on whether to adjust transaction fees) or priority access to new functions (such as being the first to try the project’s new NFT market).

4. Key characteristics and risk reminders of Candy

(1) Core characteristics

• Small amount: As the name suggests, Candy is usually distributed in small quantities—single users can generally obtain only a few to dozens of tokens, and it is difficult to obtain large amounts of Candy through a single activity.
• Free nature: Users do not need to pay money or other tokens to obtain Candy (except for time and labor costs for completing tasks), which is fundamentally different from “paid investment”.
• Strong project relevance: Candy is closely tied to the issuing project—it cannot be used independently of the project, and its value depends entirely on the development of the project (if the project fails, Candy may become worthless).
• Differentiated liquidity: Not all Candy has liquidity—some can be traded on exchanges directly, while others need to meet specific conditions (such as exchanging for formal tokens, or the project going online) to have trading value.

(2) Risk reminders

1. Value fluctuation risk: Most Candy has no actual market value when distributed. Even if it can be exchanged for formal tokens later, the value of the tokens may fluctuate sharply (it may rise, but it is more likely to fall to near zero). Do not over-expect the “appreciation potential” of Candy.
2. Fraud risk: Some scammers use the name of “Candy distribution” to trick users into providing wallet private keys, bank card information, or paying “handling fees”. Remember: formal projects will never ask for wallet private keys, and will not charge fees for distributing Candy.
3. Compliance risk: The regulatory attitude towards virtual currency varies in different countries and regions (such as some countries prohibit virtual currency transactions). Before participating in Candy activities, users need to understand and abide by local laws and regulations to avoid legal risks.

5. Summary

For virtual currency projects, Candy is a low-cost, efficient user acquisition and community operation tool; for users, it is a risk-free way to understand and participate in blockchain projects. However, it is important to note that Candy is not a “get-rich-quick tool”—its core value lies in helping users “get started” with new projects, not bringing huge profits. When participating in Candy activities, users should focus on understanding the project’s technology, team, and application scenarios, and maintain a rational attitude towards the value of tokens.